Minister of State for Finance, Taiwo Oyedele, has raised concerns that illicit financial flows (IFFs) are draining Africa’s resources and slowing socio-economic development, stressing that every lost dollar, naira, or rand translates to schools unbuilt, hospitals unequipped, and jobs not created.
Speaking at the closing of the 5th African Union Special Technical Committee and Sub-Committee on Tax and Illicit Financial Flows Conference in Abuja, Oyedele described IFFs as a major threat to Africa’s fiscal independence, noting that the issue extends beyond taxation to governance and overall economic growth.
He urged African governments and institutions to enhance transparency, strengthen enforcement, and improve cross-border collaboration to tackle illicit flows. “We must build robust beneficial ownership registers, leverage data effectively, and ensure enforcement is consistent and credible,” Oyedele said.
On taxation, the minister stressed that Africa must assert its rights in the global digital economy and ensure that value generated domestically is properly taxed. He highlighted the importance of strategic engagement in international negotiations and greater coordination among African nations to avoid fragmentation, which he warned is costly for the continent.
Oyedele also pointed to the opportunities presented by the African Continental Free Trade Area, emphasizing that fiscal systems must align with trade ambitions. He called for investment in domestic tax administration, digitization, and capacity building, while fostering unity across the continent to tackle shared challenges.
“Africa needs to go far and fast. Our future will be determined not by the challenges we face, but by how decisively we respond to them,” Oyedele said, noting that strong tax systems are fundamental to sovereignty, stability, and sustainable development across Africa.
